Full text of HRT EXECUTION SERVICES LLC's X-17A-5 filed 2021-02-26 (period 2020-12-31). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ ## **Notes to Statement of Financial Condition** # **Note 1. Organization and Nature of Business** HRT Execution Services LLC ("HRTX" or the "Company") is organized under the Limited Liability Company Act of Illinois. HRTX is a wholly owned subsidiary of Sun Holdings LLC (the "Parent"), which is owned by Hudson River Trading LLC ("HRT") and NRDC LLC. The primary business of the Company is to operate a trading platform that routes United States of America ("US") equities orders as agent for registered US broker-dealers. HRTX only routes such orders to HRT Financial LP, its affiliate broker-dealer, for execution. HRTX is registered with the Securities and Exchange Commission ("SEC") and the Financial Industry Regulatory Authority. HRTX does not hold client funds or securities. Although the Company is not exempt from SEC Rule 15c3-3, it does not transact business in securities with, or for, customers, and does not carry margin accounts, credit balances or securities for any person defined as a "customer" pursuant to Rule 17a-5(c)(4). # **Note 2. Summary of Significant Accounting Policies** **Basis of presentation:** The Statement of Financial Condition has been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). **Use of estimates:** The preparation of the Statement of Financial Condition is in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the Statement of Financial Condition. Actual results could differ from those estimates. **Cash and cash equivalents:** Cash and cash equivalents include cash maintained at two US banks. HRTX defines cash equivalents as short term highly liquid interest-bearing investments with original maturities at the time of purchase of three months or less. At December 31, 2020, cash and cash equivalents primarily included cash in bank deposit accounts. **Restricted cash:** Restricted cash includes a sublessee security deposit and cash held as collateral. The sublessee security deposit is maintained in a separate interest-bearing bank account, which is required to be returned to the sublessee when the sublease ends. The cash held as collateral is custodied at a US bank associated with a letter of credit (refer to Note 9), which is required by a landlord for one of the Company's operating leases. **Financial instruments:** Transactio…Read the full text as markdown